India’s Sensex Climbs Most in a Week as Energy Stocks Advance

June 17 (Bloomberg) -- India’s benchmark stock-index had
the biggest gain in more than a week, led by energy companies
and industrials, as the rupee reversed losses and oil dropped.

Oil & Natural Gas Corp., the country’s biggest explorer,
surged 4.3 percent, helping a gauge of 10 energy companies to
its biggest gain in a week. Reliance Industries Ltd., owner of
the world’s largest refining complex, rose for the first time in
six days. Axis Bank Ltd. had the steepest gain in a month.

The S&P BSE Sensex added 1.3 percent to 25,521.19 at the
close, rebounding from an intraday loss of 0.3 percent in the
final hour. The gauge fell for two days through yesterday on
concern rising oil prices and forecast for below average rain
will undermine Prime Minister Narendra Modi’s efforts to revive
economy growth. Foreigners have bought a net $9.9 billion of
local shares this year, the most among eight Asian markets
tracked by Bloomberg.

“It’s go to do with liquidity from abroad, and every time
the market corrects that liquidity comes and there’s a spike,”
Ajay Srivastava, managing director of Dimensions Consulting
Pvt., said in an interview with Bloomberg TV India today.

The S&P BSE Mid-Cap Index rose 1.5 percent, the steepest
advance in a week, and an index of 446 small-sized companies
gained 2 percent, the highest level since June 12. The indexes
have rallied at least 36 percent this year, faster than the 20
percent gain in Sensex.

Rupee, Brent

The rupee gained 0.2 percent to 60.0187 per dollar, ending
a two-day losing streak. It fell as much as 0.6 percent earlier
to 60.5250, the weakest level since April 20, after losing 1.5
percent in the previous two days.

Brent crude, a benchmark for India, fell for a second day
on signs violence in Iraq may not hurt the nation’s oil supply.
It increased 4.4 percent last week, the most since July. India
imports almost 80 percent of the oil it uses and an increase in
energy costs can exacerbate price pressures.

India’s wholesale-price inflation in May quickened at the
fastest pace since December, government data showed yesterday.
Consumer-price gains rose to 8.59 percent in April, the highest
among 18 Asian economies tracked by Bloomberg.

Overseas investors bought a net $210.2 million of Indian
shares on June 13. The Sensex trades at 15.7 times projected 12-month profits, near the most expensive in more than three years.
The MSCI Emerging Markets Index is valued at a multiple of 11,
data compiled by Bloomberg show.